The Integrated Economic Growth Model of Vietnam

This paper proposes an Integrated Growth Model (IGM) to explain Vietnam’s transition from a factor-driven to a productivity-driven development trajectory. Over the past three decades, Vietnam’s growth has relied heavily on capital accumulation and low-cost labor, but this approach has reached its structural limits, reflected in low total factor productivity (TFP), limited domestic value added (DVA), and weak innovation and market access (IMA). The IGM conceptualizes productivity as a function of three interactive pillars—institutions, infrastructure, and data—which together form a system of integrated drivers for sustainable growth. The study employs a conceptual analytical approach grounded in productivity theory and institutional economics, synthesizing global frameworks and Vietnam’s policy experience to construct a comprehensive analytical model. The findings indicate that the integration of institutional coordination, infrastructure development, and data connectivity can enhance TFP, increase domestic value creation, and expand access to international markets. The paper concludes by outlining key policy orientations to support Vietnam’s 2025–2030 transformation toward a knowledge-based, innovative, and self-reliant economy.